ACIT, PANCHKULA CIRCLE, PANCHKULA vs. M/S IPF VIKRAM INDIA LTD., PANCHKULA

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ITA 1246/CHANDI/2017Status: DisposedITAT Chandigarh15 June 2018AY 2013-143 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(A) which deleted the additions made by the Assessing Officer. This was based on the principle that Section 14A is not attracted if no tax-exempt income is earned.

What were the facts?

The assessee appealed against the disallowance made under Section 14A read with Rule 8D(2)(ii) for the assessment year 2013-14. The assessee argued that no tax-exempt income was earned during the year.

What were the issues?

Whether disallowance under Section 14A is attracted when the assessee has not earned any tax-exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DIVISION BENCH ‘A’, CHANDIGARH

Before: SHRI SANJAY GARG & SHRI B.R.R. KUMAR

For Appellant: Shri J.S. Kahlon, Sr. DR
For Respondent: Shri Tej Mohan Singh, Adv
Hearing: 13.04.2018Pronounced: 15.06.2018

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘A’, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA No.1246/Chd/2017 (Assessment Year : 2013-14) The A.C.I.T., Vs. M/s IPF Vikram India Ltd., Panchkula Circle, Plot No.380, Ph-I, Indl. Area, Panchkula. Panchkula. PAN: AAACI3719F (Appellant) (Respondent)

Appellant by : Shri J.S. Kahlon, Sr. DR Respondent by : Shri Tej Mohan Singh, Adv. Date of hearing :13.04.2018 Date of Pronouncement :15.06.2018

ORDER Per Sanjay Garg, Judicial Member :

This appeal has been preferred by the assessee against

the order of Ld. Commissioner of Income Tax (Appeals),

Panchkula (hereinafter referred to as (‘Ld.CIT (Appeals)’

dated 22.6.2017, passed u/s 250(6 of the Income Tax Act,

1961 (in short ‘the Act’) in Appeal No.50/PKL/16-17

relating to assessment year 2013-14.

2.

The only issue involved in this appeal is relating to the

disallowance made u/s 14A of the Income-tax Act, 1961 (in

short 'the Act') read with Rule 8D(2)(ii) of the I.T. Act.

3.

At the outset, Ld. Counsel for the assessee has invited

our attention to the impugned order of the CIT(A) and

pointed out that for the impugned assessment year there

wass no tax exempt income earned by the assessee. The Ld.

CIT(A) following the principles laid down by the Hon'ble

2 ITA No.1246/Chd/2017 AY: 2013-14

Jurisdictional High Court of Punjab & Haryana in the case

of ‘CIT, Faridabad Vs. Lakhani Marketing Inc.’ 226 Taxman

45 (P&H) deleted the additions made by the Assessing

officer on this issue. The Ld. counsel has further submitted

that the issue is now squarely covered by the numerous

decisions of the various High Courts including that of the

Jurisdictional High Court of Punjab and Haryana in the case

of ‘CIT Vs. Winsome Textiles’ (2009) 319 ITR 204 (P&H),

Hon'ble Delhi High Court in the case of ‘Cheminvest Ltd Vs.

ITO’ (2015) 378 ITR 33 (Delhi) and of the Hon'ble Gujarat

High Court in the case of ‘Corrtech Energy P. Ltd. (2014) 45

Taxman.com 116’ and further of the Hon'ble Allahabad High

Court in the case of ‘CIT Vs. M/s Shivam Motors (P) Ltd’

(2014) 272 CTR (All) 277 and various other case laws. In all

the above referred to case laws, the Hon'ble High Courts have

been unanimous to hold that no disallowance is attracted u/s

14A of the Act in case the assessee has not earned any income

not forming part of the total income.

4.

In view of the above discussion, we do not find any

infirmity in the order of the CIT(A), the same is therefore

upheld.

5.

In the result the appeal of the Revenue is hereby

dismissed.

Order pronounced in the open court on 15.06.2018

Sd/- Sd/-p (B.R.R. KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 15th June, 2018 *Rati*

3 ITA No.1246/Chd/2017 AY: 2013-14

Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR Assistant Registrar, ITAT, Chandigarh

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